Suppose that the market for Koffie Kreamer is characterized by the following demand relationships.

Demand:P=70-2Q

where Q is the number of cases of Koffie Kreamer and P is the price of a case of Koffie Kreamer. Further, suppose that the market is a monopoly and that Blair's Koffie Kreamer, the only producer, has a constant marginal cost, MC=$10.

a.Find the Blair's profit maximizing quantity (Q*) and price (P*).

b.Calculate the amount of consumer surplus at the market equilibrium.

c.Calculate the amount of consumer surplus that you would expect to arise in this market, had it been perfectly competitive -- and served by many firms that are identical to Blair's Koffie Kreamer.